Nescafe still number one in instant coffee

While sales of instant coffee have seen a decline in the last five years, facing stiff competition from barista-made coffee, Nescafe remains the top choice for Australians, according to the latest findings from Roy Morgan Research.

In the 12 months to March 2013, 38 per cent of Australians aged 14 or over bought instant coffee (excluding decaf) in an average four-week period, down from 42 per cent in the year to March 2009. More than half of consumers who bought instant coffee – 21 per cent of the population – bought Nescafe (down from 25 per cent in 2009).

Despite its declining popularity, Nescafe maintained its lead over closest competitors Moccona (11 per cent of Australians, up from 10 per cent in the year to March 2009) and International Roast (3 per cent, down from 4 per cent in 2009).

“Over the last five years there has been a small decrease in the proportion of Australians purchasing instant coffee in an average four-week period, which sales of fresh coffee have remained stable,” said Norman Morris, Industry Communications Director for Roy Morgan Research.

“During this time, the number of Australians visiting cafes has risen, which may be impacting on instant coffee sales, either directly – as an alternative to instant coffee consumption – or indirectly, by creating a taste for fresh coffee,” Mr Morris said. “Market-leader Nescafe has declined in popularity, as Moccona and supermarket brands have gained ground,” he said.

Other brand preferences more varied across States

While Nescafe is the top brand purchased across all States, other brand preferences vary slightly between the States. Queenslanders are slightly more likely (13 per cent) to buy Moccona, while a higher proportion of Tasmanians (7 per cent) prefer International Roast compared to other states.

Supermarket brands enjoyed roughly the same level of popularity across the States (between 1 and 3 per cent). Robert Timms was the fifth most popular brand in each State.

“It’s interesting to note the differences in brand preference between the States, with Queensland residents showing a slightly higher preference for Moccona,and Tasmania residents more likely to purchase International Roast,” Mr Morris said. “To remain competitive in this changing market, coffee companies need to understand their customers and how they differ from those other brands,” he said.